Dabur India has attributed early signs of demand revival in the third quarter largely to recent GST rate revisions, which helped ease pricing pressures and improve trade sentiment across markets, the company said in an exchange filing on Monday.
The FMCG major said that distributors and retailers spent October 2025 liquidating higher-priced inventory following the GST changes. With inventories now normalized, the trade environment has stabilized, leading to improved consumer sentiment in both urban and rural markets. Rural demand continued to outperform urban consumption during the quarter.
On a consolidated basis, Dabur expects revenue growth in the mid-single digits for Q3, while operating profit and profit after tax are projected to grow faster than revenue, supported by better operating leverage and cost efficiencies.
The company said the impact of GST revisions was particularly visible in its India business, where improved pricing dynamics aided volume recovery. The Home and Personal Care segment is expected to post double-digit growth, driven by strong performance in hair oils and oral care categories. Core brands such as Dabur Amla, Dabur Almond, Dabur Anmol, Dabur Red Toothpaste and Meswak are likely to register healthy, volume-led growth, with much of the portfolio outperforming category growth and gaining market share.
In the healthcare segment, Dabur said growth is expected to improve sequentially as the GST-led normalization of trade and pricing supports consumption. Dabur Honey is projected to grow nearly 10 per cent, while Honitus and health juices are expected to see over 15 per cent year-on-year growth. The Hajmola franchise and Ethicals portfolio are likely to record mid-single-digit growth. Although primary sales of Chyawanprash remain subdued, strong secondary sales are helping the brand maintain market share, with demand expected to pick up further in January due to an extended winter.
The food and beverages business is also benefiting from improved consumer sentiment post-GST adjustments. Dabur said its culinary portfolio remains on track for double-digit growth, while the premium ‘Real Activ’ range, including 100 per cent juices and coconut water, is expected to grow over 30 per cent. The broader beverage portfolio continued to gain market share during the quarter, despite seasonal softness in nectars and drinks.
Dabur added that organised trade and e-commerce, including quick commerce platforms, continued to see strong traction as GST-related pricing clarity boosted buying confidence. International markets, including MENA, Turkey, Bangladesh and the Namaste business, also delivered a solid performance, positioning the overseas business for near double-digit growth in rupee terms.
The company said recent GST reforms, along with favourable macroeconomic conditions, are expected to support a sustained recovery in demand and improved revenue momentum in the coming quarters.